Report: Chinese firms consider Vestas takeover
By Erik Siemers
Reports that Vestas could be a hot acquisition target sent its stock up Monday.
Shares of wind turbine manufacturer Vestas Wind Systems shot up Monday after a report in Denmark indicated a pair of Chinese rivals are considering takeover bids for the Danish company.
Danish newspaper Jyllands-Posten reported Monday that Chinese turbine-makers Goldwind and Sinovel, ranked No. 2 and No. 7 in the world, are attracted to Vestas' global footprint and stronger technology.
Reuters reports that the news sent Vestas shares up 14.8 percent in early trading in Copenhagen, reaching 56.20 Danish crowns. Its shares have fallen more than 50 percent since issuing two profit warnings in October.
Vestas, which keeps its North American sales and service headquarters in Portland, has been facing uncertainty and financial turmoil in recent months, due in part the fact that the U.S. Production Tax Credit, an important incentive for wind energy developers, has not been renewed. The credit is set to expire at the end of the year and, despite some attempts to extend it, there's been no action to do so.
According to a wind industry report released last week by the American Wind Energy Association, Vestas holds the second largest share of the market for U.S. wind farm deployment with 29 percent of turbines carrying the Vestas brand.
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